What Is the Definition of Financial Aid?

by John Hewitt
What Is the Definition of Financial Aid?

Financial aid is a catch-all term referring to any program that offers money to assist with the costs associated with being a student. This includes tuition help, scholarships, living stipends, textbook costs, child care benefits, work grants, entrepreneurship support and more. Aid can come from any number of sources--state, local and federal government, the college itself, professional organizations, private charities and many others.

Significance

There are so many substantial financial aid programs to take advantage of that there are few reasons anyone who doesn't want to should need to pay anything for his education. For students willing to work hard to qualify for aid programs, almost anyone can get help to pay for the majority of her education regardless of how much money her parents make every year or where she goes to college.

Function

Heavy subsidies provided to colleges by government at all levels helps make them more affordable for all. Public universities in particular often offer substantial financial incentives for students from their area to attend local universities. Students frequently benefit from tuition reductions, tax credits, preferred admission and other perks that make it easier to afford tuition. Many states offer special programs for particular student paths, such as engineering or basic science.

Features

Many colleges offer special aid programs based on need. For people from relatively poor families, this can be a very good way to get additional money for college that supplements government aid programs. For single mothers and other groups, many educational grants are available from state, local and the federal government. Inquire at your college financial aid office about grant opportunities in your area. If you have a residence out of state, you can often get grants from your home area and apply them to education in another state.

Potential

Contests frequently award substantial rewards to participants. Many of these scholarship contests actually receive relatively few entries, but they are still a rather hit-and-miss form of financial aid to pursue. Generally, it is a safer strategy to only pursue contests after already exploiting all other avenues of available financial aid. Prioritize contests in which you can be relatively well assured of at least placing well. Look for contests that speak to your academic passions.

Benefits

Most financial aid programs require students to apply to them every year before January 1. Be sure to inquire about new opportunities for financial aid every year. In many cases, demonstrated good academic performance in a particular field can qualify students for scholarships that they may not even know they are qualified for. Asking college department heads directly about scholarship programs is a very good way to ensure you are doing all you can to provide for your education.

About the Author

John Hewitt began freelancing in 2008, writing about subjects ranging from music to stock trading, the energy industry and business. His ghostwritten work has appeared all over the Web. He attended New York University, pursuing a bachelor's degree in history.

Photo Credits

  • Peter Davis, Flickr